Macy’s Store Closings 2021: More Locations To Shutter As Retailer Whittles Down Footprint

Macy’s (M) will trim its brick-and-mortar store count further in 2021 as part of its previously announced reduction plan as it looks to better compete in the changing retail environment.

The department store retailer will close 45 locations by the middle of this year and has already notified employees of the closures, CNBC reported.

Macy’s announced its plans to shutter 125 stores by 2023 early last year as it underwent a restructuring plan to realign its retail strategy. Macy’s plan was to concentrate on smaller-format stores. At the time, the company said that it would not only close locations but that it would lay off 2,000 workers to streamline its operations in a three-year plan.

The retailer closed about 30 stores in 2020.

A company spokeswoman told CNBC on Tuesday, “As previously announced, Macy’s is committed to rightsizing our store fleet by concentrating our existing retail locations in desirable and well-trafficked A and B malls.

To that end, we announced several store closures today that align to the guidance we provided in February 2020. These closures bring us closer to achieving the right mix of mall-based stores.”

Analysis from commercial real estate services firm Green Street shows A++ malls bring about $1,000 in sales per square foot for retailers compared to a C+ mall that does about $320 in sales per square foot.

Macy's reported a sales decrease of more than 20% for the third quarter of 2020, which ended in November as consumers stayed away from malls during the coronavirus pandemic. Macy’s did see a 27% increase in digital sales, but it was not enough to offset its in-store losses for the quarter.

The retailer has 544 namesake locations as well as 34 Bloomingdale’s stores, and 166 Bluemercury stores, its website said. Liquidations sales have already begun at some of the locations that are set to close, with the rest scheduled to start later this month.

The news that Macy’s is closing more stores comes as many retailers struggle to gain a foothold amid the pandemic. They temporarily closed their doors in March as nonessential businesses were required to shutter.

Retailers such as Neiman Marcus, J.Crew, JC Penney, among several others, filed for bankruptcy protection amid the pandemic as they looked to financially restructure to save their business.

Shares of Macy's were trading at $11.51 as of premarket open on Wednesday, up 12 cents of 1.05%.